Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required Information (The following information applies to the questions displayed below! Chavez Company most recently reconciled its bank statement and book balances of cash on
Required Information (The following information applies to the questions displayed below! Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding Number 5888 for $1028 and Number 5893 for $494. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation Date Description Withdrawals Deposits Balance September 1 September 3 Check #5888 $ 16,800 $ 1,028 $ 15,772 September 4 Check W5902 $ 719 $ 15,053 September 5 Cash deposit $ 1,103 516, 156 September 7 Check 65901 $ 1,824 $ 14,332 September 12 Cash deposit $ 2,226 $ 16,558 September 12 NSF check $ 600 $ 15,958 September 20 Check #5905 $ 937 $ 15,021 September 21 Cash deposit $ 4,093 $ 19,114 September 22 Check 85903 $ 399 $ 18,715 September 22 Check 85994 $ 2,098 $ 16,625 September 25 Cash deposit $ 2,351 $ 18,976 September 28 Check 65907 $ 213 $ 18,763 September 29 Check #5909 $ 1,807 $ 16,956 September 30 Collected note $ 1,485 $ 18,441 September 30 Interest earned $ 12 $ 18,453 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,193 September 12 2,226 September 21 4.093 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,103 September 12 2,226 September 21 4,093 September 25 2,351 September 30 1,682 11,455 Cash Payments Check Number Cash Credit 5901 1,824 5902 719 5903 399 5904 2,060 5905 937 5906 982 5907 213 5908 38B 5909 1,807 9,329 PR Debit Cash Date Explanation August 31 Balance September 38 Totat receipts September 30 Total payments Additional Information Account Number 101 Credit Balance 15,278 26,733 9,329 17,484 R12 D23 11,455 Additional Information (a) Check Number 5904 is correctly drawn for $2,090 to pay for computer equipment, however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,060 (b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account Its return has not yet been recorded by the company (c) The collection of the note on September 30 is not yet recorded by the company 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance of no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Vlow transaction list
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started